It can be a troubling experience to discover that a claim filed with your auto insurance company has been denied. Medical bills and property damages can come with incredible price tags and it can be downright scary when your insurance company refuses to help.

Insurance representatives can be very precise when handling a claim. Requirements must be met before a claim can be approved. It is important to completely understand what your specific policy includes in the event that you are involved in an accident.

This article will discuss some of the reasons why car insurance companies deny claims and how you can avoid these pitfalls.

Reasons Why Claims are Rejected

Personal Negligence – If the insurer discovers or believes that the accident occurred while the driver was intoxicated or while allowing an unlicensed driver to operate the vehicle, they will rightfully deny the claim

Repairing the Damage on your Own – According to the National Association of Insurance Commissioners, some companies will refuse a claim if the claimant has already repaired the damages prior to contacting the insurance company, even if receipts are kept and costs are documented

Not Enough Coverage – When consumers compare different insurance quotes, they may seek ones with a lower premium. However, keep in mind that the cheapest policies render the least amount of coverage. Most states only require drivers to withhold liability insurance that would only protect the other driver in the event of an accident

Using Your Car for Business Purposes – According to the Insurance Information Institute, vehicles used for business purposes and are owned by a company must carry a business auto insurance policy for proper coverage

Refusing to Cooperate – Getting your claim resolved may require you to do a bit of work on your end. To conduct an investigation, insurance companies may request documents, receipts and various pieces of information. Refusing to provide this information will likely result in a rejected claim

Filing a Claim Too Late – If a policyholder does not act quickly enough after an accident, this may create doubt and suspicion with the company

Not Following-up with the Representative – A rep may assign you a case number once a claim has been filed. They may attempt to contact you via phone or email to request additional information before they close out the case. It is crucial to maintain follow-up contact with the insurer until the claim has been accepted

Lying or Exaggerating the Claim – If a company uses their discretion to determine that a claim is fraudulent or exaggerated, this is immediate grounds for denial. Not to mention that being found guilty of insurance fraud is a serious crime

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Increasing Your Chances of Getting Your Claim Approved

Gathering as much information as you can at the scene of the accident is vital. This includes the full name and contact information of the other driver and any cooperating witnesses.

Be sure to document the names of any police officers on the scene as well.

If possible, take pictures of all damages, including your vehicle and theirs. Take pictures of license plate numbers and a few pictures of the location of the accident.

The more information you have to support your claim, the more likely the insurance company will accept it.

In regards to bodily injury, the insurance company will request medical records and documented expenses related to the accident. They may also request doctors notes stating how long you should be out of work.

Failure to provide any requested information will likely result in the company refusing to provide compensation.

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